Stock Market Falls On Russia-Ukraine News; Lululemon, Micron Rally On Earnings

The S&P 500 was on track to end a four-day win streak after Russia downplayed hopes of progress in peace talks and intensified attacks in Ukraine.

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Indexes climbed off early lows. The S&P 500 fell 0.3%, while the Nasdaq composite lost 0.6%. The Dow Jones Industrial Average inched up 0.1%.

Volume fell on the NYSE and Nasdaq compared with the same time on Tuesday.

A Russian official dismissed talk of a breakthrough in peace talks with Ukraine. Russian forces today ramped up ground and air assaults in eastern Ukraine.

On Tuesday, global stocks climbed after Ukraine offered to adopt a neutral status and Russia said it would reduce military operations around Kyiv. Today’s market losses were minor in comparison with Tuesday’s gains and the rally of the second half of March.

U.S. crude oil rose 3.8% to $108.28 a barrel, after it fell below $100 on Tuesday.

In another side-effect of the conflict, Germany’s economy minister said the country has taken the first step in a contingency plan that aims to protect the country against reductions in Russian gas deliveries. The first step is a formality, and for now Russian supplies continue, the official said.

European Stock Markets Mixed

The German DAX was down 1.6% in afternoon trading. The Paris CAC 40 fell 1%, and the London FTSE 100 index was up 0.1%.

Asian stocks were mixed. The Tokyo Nikkei 225 fell 0.8%. The Shanghai Composite rallied 2% and the Hong Kong Hang Seng rose 1.4%.

Among major U.S. stock market movers, Lululemon Athletica (LULU) gapped up to the highest price since early January after the workout apparel company beat profit expectations but sales for the January-ended quarter were slightly below views. Lululemon stock is trying to recover from a 43% plunge from November through mid-March.

Upscale furniture chain RH (RH) fell more than 8% in heavy volume. The company beat profit expectations, but its full-year sales forecast disappointed.

Stock Market Movers: Micron, BioNTech

Micron Technology (MU) gapped up to a gain of 3.5% as shares regained the 50-day moving average. The memory-chip maker beat analysts’ estimates for its February-ended quarter and guided higher for the current period. Micron is forming a double-bottom base.

BioNTech (BNTX) rose nearly 3% after paring gains following a strong earnings report and bullish full-year guidance. The company, which makes a Covid-19 vaccine with partner Pfizer (PFE), also announced a $1.5 billion share buyback.

The Innovator IBD 50 ETF (FFTY) rose 0.1%. Nvidia (NVDA) fell 2% in heavy trading but remains higher for the week. Matador Resources (MTDR) slid 4.5% and is testing the 21-day exponential moving average.

Energy, mining and agricultural stocks bounced back in the IBD 50. CF Industries (CF) rose 4%, MP Materials (MP) rose 2% and Callon Petroleum (CPE) gapped up to a 1.8% gain.

Darling Ingredients (DAR) has regained the 80.31 buy point of a cup-with-handle base. Carlisle Cos. (CSL) remains in buy range from its 250.33 buy point to 262.85.

ADP Jobs Report Above Views

Ahead of Friday’s jobs report, the ADP estimate of job growth showed an increase of 455,000 jobs this month. That was above the consensus forecast. The ADP report is a precursor to the Labor Department’s report, which is expected to show an increase of 438,000 in private payrolls. The stock market will be watching that headline Friday morning.

Also this morning, the final fourth-quarter GDP revision came in with a 6.9% increase. That’s slightly lower than the 7% in the previous estimate.

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